Blog Article

Saving for retirement: creating pension wealth

Saving for retirement: creating pension wealth

Date: 27 July 2021 | By: cosgrove

When it comes to saving for retirement, there are always options, no matter how late you leave it and it pays to get advice.

Increase your contributions
If you’re currently paying the minimum 8% (including tax relief and 3% employer’s contribution)
into your workplace pension, consider increasing it. Making a few cuts elsewhere can help you
find those much-needed funds.

Look at your State Pension entitlement
If you have made at least ten years’ National Insurance contributions (NICs), you will be entitled to some
level of State Pension. The full rate New State Pension is currently £179.60 per week, or £9,339.20
per year, with eligibility reserved for those who have made 35 years’ worth of NICs. While the State
Pension is not enough to live on, it will help boost your income and saving for retirement.

Quantify your pensions (and any other assets)
When you look at the State Pension entitlements, they do serve as a wake-up call to engage with any other pension provision you have made. It’s likely, if you’ve moved jobs, you have accumulated
pensions; these need to be quantified and the underlying investments assessed for diversity and suitability.

Take advice
An ILC study2 revealed that pension savers who took advice for a five-year period between 2001 and 2006 accumulated nearly £50,000 more wealth on average (in pensions and financial assets) than those who only took advice at the beginning. It’s easy to  justify the value of advice when saving for retirement.

We can give financial advice on personal pensions, getting the most suitable annuity rates, stakeholder pensions, self invested personal pensions (SIPPs) and small self-administered schemes.

The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested.

 

2 International Longevity Centre UK, 2019

Quilter Essentially Wealth Q3 2021

Photo by Vidar Nordli-Mathisen on Unsplash


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